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Balfour Beatty slumps on further profit warning

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Mid cap international construction firm Balfour Beatty (LON:BBY) shares sank almost 12% in early deals after issuing its third profit warning this year and its fourth in the last two years.

Under the cosh Balfour said it had seen "further worsening" in trading at its mechanical and electrical engineering arm - part of its UK business since the first quarter IMS.

It now expects a £35mln shortfall in this division compared to previous expectations, it said, but added this would broadly be offset by further targeted disposal gains in the second half of 2014.

In May this year, shares lost around one-sixth of their value after the company revealed that pre-tax profits for 2014 are expected to be 'significantly' below previous expectations, and that it was on the search for a new CEO.

And in April, the infrastructure group's shares fell 10% as it issued a profit warning form the  UK construction business.

Today, the group said that as previously highlighted, it is on a 12-18 month programme to restore its UK construction business.

"Whilst the regional and major projects businesses, which comprise 90% of the UK construction business, are on track and continue to perform in line with our expectations, there has been further deterioration in the Engineering Services business," it said.

Quick facts: Balfour Beatty plc

Price: 210.2 GBX

LSE:BBY
Market: LSE
Market Cap: £1.45 billion
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